2. The NYC Rent Guide Line Board issued a rent increase guideline for the renewa

ID: 354000 • Letter: 2

Question

2. The NYC Rent Guide Line Board issued a rent increase guideline for the renewal of leases of all rent stabilized apartments in NYC as follows: IF THE CURRENT IS RENT IS LESS THAN 500 DOLLARS THE INCREASE IS 15 DOLLARS PLUS 3% OF CURRENT RENT FOR ONE YEAR LEASES, 15 DOLLARS PLUS 5% OF CURRENT RENT FOR TWO YEAR INCEASES and 15 d liars plus 7% of the current rent for three year lease. If the current rent is greater than or equal to 500 dollars, there will be no 15 dollar extra charge and the increases are 3% for one year, 5% for two year and 7% for three year leases. Use the EXCEL formula to compute the percent increase, the 15 dollars charge and the new rents. Complete the following chart. Current Rent Number of Percent increase 15 dollar extra charge Total new rent year (s) renewed 450 550 700

Explanation / Answer

Total new rent for current rent of $ 450 renewed for 2 years

= Current rent x ( 1 + Percent increase ( %) / 100) + $15

= 450 x ( 1 + 5/100) + $15

= $450 x 1.05 + $15

= $472.50 + 15

= $487.50

SIMILARLY ,

Total new rent for current rent of $550 renewed for 1 year

= 550 x ( 1 + 3/100)

= $550 x 1.03

= $566.50

Total new rent for current rent of $650 for 2 years

= $ 650 x ( 1 + 5/100 )

= $ 650 X 1.05

= $682.50

Total new rent for current rent of $500 for 1 year

= $500 x ( 1 + 3/100)

=$500 x 1.03

= $515

Total new rent for current rent of $700 for 3 years

= $700 x ( 1 + 7/100)

= $700 x 1.07

= $749

Current rent

Number of years renewed

Percent increase

15 Dollars extra charge

Total new rent

450

472.50

487.50

550

566.50

650

682.50

500

515

700

749